Trump Announces 90-Day Tariff Pause for Most Countries, UK Takes Major Hit

UK Hit with Import Taxes

President Donald Trump's announcement of a 90-day tariff pause for most countries has dealt a major blow to the UK. Britain faced a baseline 10% import tax on almost all its products entering the US, in addition to the 25% levies on aluminium, steel, and cars.

Financial Impact on UK

After the implementation of Trump's tariffs, London's FTSE 100 experienced a significant drop, with the share index falling by 2.92% to a 13-month low. Experts warn of potential impacts on fuel prices, mortgages, pension funds, and the cost of goods in Britain, raising fears of a recession.

Trade War Ramifications

The trade war is expected to affect various aspects of daily life in Britain. Sir Keir Starmer emphasized the need for better coordination across Europe to safeguard the UK economy in light of the tariffs on British goods.

UK-EU Relations

While the UK has refrained from immediate retaliatory action, the EU has voted to impose countermeasures on some US goods. The UK government aims to strengthen trade ties with other countries, including efforts to rebuild relations with the European Union.

EU Responds with Tariffs

In response to Trump's trade actions, the European Union has imposed a 25% tariff on everyday items. EU members have voted to launch retaliatory tariffs in the coming weeks, affecting products like orange juice, tobacco, chicken, almonds, and soybeans.

Negotiation Over Escalation

The EU has called for negotiations with the US to resolve the trade dispute, emphasizing the importance of maintaining smooth and strong EU-US supply chains. President of the European Commission, Ursula von der Leyen, stressed the need to negotiate and not escalate tensions.